Comment: Do firms that pay less company tax create more jobs? Volume 59, September 2018, Pages 25–28

Sinclair Davidson

Economic Analysis and Policy, 2018, vol. 59, issue C, 127-129

Abstract: The paper presents a critique of the recent paper published in this Journal by Dr Andrew Leigh (Do firms that pay less company tax create more jobs? Volume 59, September 2018, Pages 25–28). Besides the model misspecification, omitted results and data availability bias of the regression used to inform the overall results, there are no controls for confounding factors that influence the effective marginal tax rate. These omissions are detrimental to the validity of the paper. This paper seeks to illuminate the sources of those errors and argues that the paper is sufficiently flawed that no weight should be given to its analysis when considering the potential consequences of a company tax rate cut.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:59:y:2018:i:c:p:127-129

DOI: 10.1016/j.eap.2018.06.003

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